Isuzu to Set Up 1000 Crore Plant in India

Japanese utility vehicle maker, Isuzu is planning to setup a plant in the Sri city of Andra Pradesh. Isuzu will invest around Rs 1,000 crore to build this plant, which has a capacity to produce around 50,000 vehicles a year.



The company has already formed an Indian entity called Isuzu Motors India Private Limited, which is setting up an office in Chennai by August. Isuzu's move to set up a plant in Sri City is a big gain for Andhra Pradesh, which is struggling to get a car plant in the state for the last two decades. Isuzu will assemble and distribute spares before entering to the full scale manufacturing operations. So their immediate plan is to import CBUs (completely built units) and knocked down units of its lifestyle pick up truck DMAX and large SUVs like MU7 from Thailand.



K Pradeep Chandra, the principal secretary (Industries), State Government of Andhra Pradesh said, “Isuzu have shown some interest for setting up one of their units here. They have huge range of products starting from cars to LCVs all the way to pick up trucks and heavy trucks. We don't yet know which specific model they are looking at manufacturing here”.



Isuzu India is working closely with a Mitsubishi team located in Chennai to plan its India strategy. Mitsubishi globally has 9.2 per cent stake in Isuzu Motor Limited. Another option is SML Isuzu plants in Chandigarh, a venture where Isuzu has a 15 per cent stake. SML Isuzu plant there manufactures light duty trucks and buses.



The company has already launched two reputed variants ‘MU7’ SUV and ‘D Max’ pickup truck in the Indian market. Spare parts of the vehicles will be imported through Chennai ports. For assembling the vehicles, Isuzu has borrowed Hindustan Motor’s Chennai Car Plant along with General Motor’s workshop in Halol. About 30 % of Isuzu shares are owned by General Motors.

Isuzu is well known for the quality of vehicles, which include heavy, medium and light-duty trucks, buses, passenger vehicle engines, industrial-use diesel engines. Isuzu's current plan is to launch pick-ups and SUVs.



Isuzu plant in India will start production commercially by 2015. Isuzu increased stake in its joint ventures in Russia and India and last year the company finalised a joint venture with Qiangling Motors in China. Isuzu will compete with Tata Motors' Ace and Mahindra's utility vehicles.